The week in charts: Weak capex, FPI stress, consumption cracks
Subscribe to enjoy similar stories. Indian companies are approaching 2025 with caution, as investment trends show a mix of recovery and sluggishness in the latest quarters. Additionally, the weakening rupee has impacted foreign portfolio investors' dollar returns.
Meanwhile, a new government survey shows paltry growth in consumption expenditure. New project announcements by Indian companies have slowed significantly, with the amount declining 22% year-on-year and 16% quarter-on-quarter to ₹6 trillion, data from the project-tracking database of Centre for Monitoring Indian Economy (CMIE) showed. Both government and private companies reduced their investment proposals.
For the first nine months of 2024-25, new projects totalled ₹15.6 trillion, down 27% compared to the same period last year. Manufacturing sector showed mixed results, but construction and real estate segments recorded a 65% drop in new project announcements. The rupee's steady slide against the US dollar has dampened foreign portfolio investors' (FPIs) returns in India, despite the local currency being among the least impacted globally.
The BSEDollex 30, the dollar-equivalent of the Sensex, recorded a return of 5% in 2024, lagging behind the Sensex's 8.16%. The rupee depreciated nearly 3% last year even as the interventions by the helped limit the decline compared to other currencies. The trend is likely to continue this year as well as uncertainty is high amid expectations of higher protectionism under the incoming Donald Trump-led administration.
$2 billion: Is the amount Adani Enterprises Ltd (AEL) will raise by exiting its 26-year joint venture with Singapore's Wilmar Group. AEL will sell its entire 43.94% stake in Adani Wilmar Ltd. Of this, 31.06% of it
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